A residential property in Westfield, New Jersey sells for $1,100,000. The seller owes the Realty Transfer Fee (RTF) calculated on a graduated basis: $2.00 per $500 on the first $150,000, $3.35 per $500 on the next $350,000 (from $150,001 to $500,000), and $3.90 per $500 on the remaining amount above $500,000. The buyer owes the mansion tax (1% of the sales price). What is the TOTAL amount of RTF and mansion tax combined that must be paid at closing?
Correct Answer
A) $18,625
RTF Tier 1: 300 × $2.00 = $600. Tier 2: 700 × $3.35 = $2,345. Tier 3: 1,200 × $3.90 = $4,680. RTF total = $7,625. Mansion tax = 1% × $1,100,000 = $11,000. Combined = $18,625.
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